Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (4420)	4/1/1999 3:17:00 PM
From: Tom DuBois	Respond to of 4969

Thanks, Steve...for the explanation and suggestion. Tom

To: steve goldman who wrote (4420)	4/3/1999 7:49:00 PM
From: Tom DuBois	Read Replies (1) \| Respond to of 4969

Steve...I've been looking at the NTBK options advice you gave me and, quite honestly, this looks too easy. I'm not very experienced at covered calls on a stock that has taken off like NTBK. Would you mind checking my math and see if I have this right?? I own NTBK at $62. I have it covered with Apr 65's (NQADM) for which I received $2.00 per (I'm excluding commissions for ease). I could close out the Apr 65''s for $12 (deductible loss of $10.00 per). If my quotes are correct, the May 80's (NQAEP) are selling for $10.25. Why wouldn't I roll out to the May 80's, cover my loss on the Apr 65's and still own the stock with a covered call at 80?? This looks too easy...have I screwed up the math?? TIA for the free advice (I suspect you get paid to answer these kind of questions). Tom